Private REITs Outraise Public Competitors by 45% in 2025

Private REITs raised $4.2B in H1 2025, surpassing public REITs by 45% as investor demand drives sector growth.

August 27, 2025

Private non-traded REITs raised $4.2B in the first half of 2025, compared to $2.9B for publicly registered REITs, according to Robert A. Stanger & Co.
Aggregate NAV for private non-traded REITs reached $24B in Q2, up 10.5% quarter-over-quarter.
Credit continues to lead overall fundraising, pulling in more than $31B across public and private BDCs.

Key Takeaways

The Big Picture

AltsWire reports that private non-traded real estate investment trusts (REITs) are drawing significantly more capital than their publicly registered counterparts in 2025. According to Robert A. Stanger & Co., private REITs raised $4.2B as of June 30, 2025. Public non-traded REITs collected $2.9B during the same period, putting them 45% behind.

Market Momentum

Private REITs are also expanding their footprint. Their aggregate net asset value rose to $24B in Q2, marking a 10.5% quarter-over-quarter increase.

Credit vehicles remain the largest fundraising category. Publicly registered non-traded BDCs raised $23.1B in the first half of 2025, while private BDCs raised $8.5B. Excluding Blue Owl Technology Finance Corp.—which listed on the NYSE in June after reaching nearly $8B in NAV—private BDCs still grew NAV by 8.8% in Q2.

Aggregate NAV snapshot shows Private REITs and BDCs gaining market share over publicly registered counterparts in 2025.

Why It Matters

Kevin Gannon, CEO of Stanger, said private placements are on pace for strong annual growth. Private REITs are expected to raise more than $8 billion in 2025, a 60% increase from last year. BDCs in the private market are targeting $19 billion in fundraising. According to Gannon, “Private placement REITs are now positioned to outraise their publicly registered counterparts this year.”

Key Developments in Q2

Regulatory Tailwinds: SEC exemptive relief on share classes led Jefferies Credit Partners BDC Inc. and Vista Credit Strategic Lending Corp. to reclassify shares.
Strategic Consolidation: Goldman Sachs’ $7B BDC announced plans to acquire a smaller affiliated vehicle.
Institutional Backing: Starwood Credit Real Estate Income Trust secured a $200M commitment from CalSTRS.
New Offerings: Blue Owl and CNL launched perpetual private non-traded REIT vehicles.

Looking Ahead

Private placements benefit from lighter regulation, higher concentration limits, and freedom from legacy asset drag. Combined with growing institutional support, these advantages are fueling strong investor demand. If fundraising trends hold, 2025 could be the first year private non-traded REITs decisively outpace their public peers.